Apartment Supply Drops by 51% Nationwide Compared to Last Year
Only 16 Complexes to Be Offered This Month
It is forecasted that the nationwide apartment supply volume this month will be reduced to about half compared to the previous year.
According to Zigbang on the 3rd, the scheduled supply volume nationwide this month is 16 apartment complexes with 12,676 households (7,821 general supply households). This is a 51% decrease compared to the same month last year (25,974 households).
By region, 6,251 households will be supplied in the metropolitan area, and 6,425 households in the provinces. In the metropolitan area, there are no scheduled supply projects in Seoul, while Incheon will supply 4,180 households, and Gyeonggi will supply 2,071 households. In the provinces, Chungnam will supply 1,763 households, Busan 1,436 households, Daejeon 952 households, Ulsan 899 households, Daegu 755 households, and Gwangju 620 households.
Looking at individual complexes, in Gyeonggi, ‘Hillstate Hoeryong Station Parkview’ in Howon-dong, Uijeongbu-si plans to supply 674 households out of 1,816 households. In Incheon, HDC Hyundai Development Company, Hyundai Engineering & Construction, and POSCO E&C are preparing to supply 1,453 units of ‘City OCEEL 7 Complex’ in Block 4 of Michuhol-gu, Hakik-dong.
The supply atmosphere is somewhat gloomy. According to the Korea Research Institute for Human Settlements, the 'January Apartment Supply Outlook Index' averaged 71.4 points nationwide, down 10.6 points from the previous month. The outlook is poor due to tightened mortgage loan regulations, economic downturn forecasts, and anxiety linked to the impeachment political situation.
Accordingly, construction companies are also showing a passive stance toward supply. Concerns are growing that new supply volume will decrease and demand will shrink compared to previous years. Last month, although 13,113 households were scheduled for supply, only 8,585 households were supplied, resulting in a supply performance rate of 65%.
Despite this situation, ‘The Sharp Lavionde’ supplied in Jeonju, Jeonbuk showed a competition rate of 26.1 to 1 on the first priority application. ‘Yangwoo Naeanae Aspen’ in the 5-1 living zone of Sejong City attracted a total of 3,745 applicants for 311 households, recording an average competition rate of 12 to 1.
A Zigbang official said, "The February supply market is expected to see a decrease in new supply volume and a contraction in demand compared to previous years," but added, "In some areas like Sejong City and Jeonju, Jeonbuk, new apartments are showing strong demand with high subscription competition rates, so the concentration of applications is expected to continue depending on location and competitiveness of supply prices."
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